Stated Amount Endorsement
What Does Stated Amount Endorsement Mean?
Stated amount endorsement is an endorsement to a policy by the insurance company waiving the coinsurance clause on the specified property. This is also known as agreed amount endorsement and no coinsurance penalty will be made for as long as this endorsement is in effect. This is provided when there is difficulty in determining the value of the insured vehicle.
Insuranceopedia Explains Stated Amount Endorsement
The stated amount endorsement amends the Limit of Insurance provisions in the commercial auto policy. The physical damage coverage is not limited in the absence of the endorsement. The insurer will pay the cost to repair or replace the damaged property, or the property’s actual cash value if a covered auto is damaged by a covered peril.
Stated amount endorsement or stated amount coverage provides a major benefit to the insurer. The insurer is not required to pay the limit of insurance (estimate of the vehicle’s real worth) if the vehicle incurs a total loss, however, the insurer can pay its estimation of the vehicle’s actual cash value.